Sunday, May 22, 2011

James Turk - What's been going on with the silver price?

James Turk of has interviewed "renowned Wall Street trader and financial commentator" Victor Sperandeo. Here is a youtube video from "GoldMoneyNews" which shows the portion of the interview that relates to silver:

Some highlights:
-Silver has been roughly twice as volatile as the S&P 500 over the last ten years.
-Silver trading algorithms lose money, except very long-term ones. This is because silver is very volatile month to month, but it is ultimately drive by long-term fundamentals.
-The retracement from $49 to $35 is fundamentally healthy and bullish.
-65% of silver mined is used for industrial production, 35% is for investment/money. Compare to 10% of gold used for industry and 90% available for other uses.
-There is very little silver relative to gold in terms of what is physically available for investment.
-India has been a net seller of silver in the recent past but this is reversing.
-As long as governments keep "stealing from savers" with borrowing and inflation, you must stay long precious metals.

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